Economy professor doesn’t know economics

OK, true, he’s only of practice in political economy but he should know this stuff:

In that case my question is a simple one, and is ‘why should that happen?’ I can find no reason for this.

I can, for example, see no hint of new technology on the horizon to which only we have access as a result of Brexit.

There is also no hint of a significant upturn in demand for existing goods and services: a combination of new inflation and uncertainty, plus credit already being stretched, suggests there is relatively little mileage left in the current consumer led growth.

And nor is there much sign of investment. Nissan is hinting at reversing its decision to stay. Banks are definitely planning to move, at least in part. And in the face of demand uncertainty at home and abroad, plus real inflation and interest rate rise risks there is almost no incentive for business to invest. Falling tax rates, which result in tax based incentives becoming ever more worthless, do not change that. Nor will a supposed absence of regulation: any wise business knows we will still face as much regulation as at present, but it will now come bilaterally rather than multilaterally and so be much more onerous to deal with.

So where’s this structural change going to come from? Is it from being the dirty country of Europe? The EU will certainly adjust for that in regulations. Or from being a tax haven? There’s a new EU tax haven list due soon.

What is the effect of a decline in the exchange rate upon the domestic economy?

Anyone? Bueller?

Yes, well done, it stimulates the domestic economy, through higher exports and greater import substitution.

apparently City employs an economics professor who does not know this.

17 comments on “Economy professor doesn’t know economics

  1. He used to be lukewarm on the EU, didn’t like it on the grounds of lack of democracy (fair enough) and neo-liberalism or some such.

    He is now fervently pro-EU. What changed?

    He mentioned in the past couple of days he only has a 3 year contract with the University, then off to work at the EU.

    This seems to explain the change of heart.

    As Groucho said ‘I have principles, and if you don’t like them, I have others…’

  2. Maybe Nissan sees the new taxes that will be imposed on new cars from 1st April by a “tory” government. What do we think their effect will be?

    It never ceases to amaze me how taxes are good to reduce people’s consumptions of things the nannyists/statists don’t like but for some magical reason, taxes on anything else are neutral (minimum wage does not make work more expensive and so you have less of it for example)

  3. It seems that today the Fat Prof believes that tax rates are taken into account in investment decisions. I guess the trouble is that he is capable of believing anything and everything but that it is impossible to predict what ideas he believes in at any one moment. Quantum economics, I suppose. There is only one certainty: MOAR TAX

  4. A certain James G is doing the heavy lifting over in Fat Prof land. He had the temerity to ask the great man how the vast majority of countries not in the EU manage to survive. Fatty gave the response :

    “Many don’t

    Haven’t you noticed?”

    James’s days are surely numbered. But if that is the best a Fat Prof can come up with, his students ought to be able to run rings round him.

  5. Adrian

    Is he confirming he is going to work in Ireland once Brexit actually happens – can you forward over the link? I must confess I am surprised he can find a European jurisdiction willing to take him. I very much doubt he is fluent in a second language. Unless his ‘EU’ location is one of the ;Curajus state wannabes’ around the world?

  6. I note, to my dismay, this comment made at TRUK by that thoroughly odious fascist Howard Reed about another member of the Gang of Four of Murphy’s Principal Stool Inspectors:

    “It might be good to get some comments from “Lexit” (left-wing supporters of EU exit) here as they have been quite optimistic about triggering Article 50, and I’d love to have more information on what their basis for optimism is. For example my friend Carol Wilcox is in this camp.”

    It means that the loathsome Wilcox and I share the same political views on at least one issue – a sobering thought.

  7. Adrian

    Thanks – this is great news – the most evil man on the politico-economic part of the internet has said he is leaving the UK. I will certainly be looking to hold him to this!

  8. Diogenes

    P Petain is chancing his arm at the minute as well – he really has gone all wobbly, as he realises that in order to work in another EU country he might actually have to have some expertise……. Brexit would be worth it just to see him in penury….

  9. “Looking at it again, not clear whether he means working for the EU or just moving to an EU country, but either way he says he is off. If he is looking for work in the EU, it would explain his change of heart.”

    So we don’t need freedom of movement to go,and work in EU countries after all. Another argument self demolished.

  10. I only skimmed what the Fat Twat actually wrote, mainly because it is a waste of time to read his brainfarts closely. But is he really claiming that there is not much sign of investment?

    I hope the good Marshall reminds him of Google, Apple and MacDonalds moving activities to London. That list should make him gnash his teeth! 🙂

  11. Damn, I forgot his Irish passport.

    Can we get him tax avoidance instead? Leaving both countries of which he’s a national must fall into one of the 100s of tax avoidance examples he’s given?

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